What do you think?

[flower04]

We are filing in Dec. We had to wait 90 days for a bill we paid to be wiped out so it wouldn't be considered "preferential" payment.

We are trying to live our 13 budget now so we can adjust as needed before we file.

I always thought it was the debt that consumed all our extra cash, but now that we have stripped everything down we see that our 1st and 2nd mortgage eat up almost one of my DH's entire paycheck. We survive because I teach music lesson out of my home 4 days a week and a contractor, self-employed with teh school district and get paid 10 months out of the year. However, budget cuts have reduced my hours and take home pay.

We have 2 kids and hope for another as soon as I'm medically cleared to get pregnant. We have 1 car paid off, 1 car we owe that's new (our attorney recommended we purchase this as the car it replaced was on its last leg). We probably have about $20,00 or less equity in the house because of the economy right now. We have $140k in our 13.

I use my home for private music instruction so where we live is very important and our income depends somewhat on it. If we walk away from teh house, I know there are sevearl home to rent but our credit is so poor....and what about the tax deduction? Also, if we have more money as "available"income," wont the trustee want it anyway?

We haven't talked to our attorney about it because it seems like a no brainer for us to stay in the house, but I wanted to get your opinion.

Thanks

[rrockinggramma]

One of the hardest decisions one has to make is to walk away. I applaud your ability to recognize this prior to your filing. Many wait until after filing and then it is too late. I would start looking for a home in your area with affordable rent and move prior to filing and then do the chapter 13 on the house and everything else.